"Suspect paths" when listing dir with OpenSSH sftp client

After having successfully logged in on Gateway with OpenSSH sftp client, doing a ls command results in "suspects paths" error messages. Putting a file in the folder works, but trying to send a file without specifying the filename results in another error.

Here is a session transcript:

connected to 172.28.128.3.
sftp> ls
Server sent suspect path "/in" during readdir of "/"
sftp> put gatewayd.ini /in/gatewayd.ini
put gatewayd.ini /in/gatewayd.ini
Uploading gatewayd.ini to /in/gatewayd.ini
gatewayd.ini                                                                                          100% 2403   509.8KB/s   00:00    
sftp> put gatewayd.ini /in/
Uploading gatewayd.ini to /in/
remote open("/stonebranch/"): Failure
sftp>

To upload designs, you'll need to enable LFS and have an admin enable hashed storage. More information